To use the development environment on-premises, you can download the VHD file and then create a virtual machine using virtualization software such as Hyper-V or VMWare. These VMs are similar to cloud VMs and contain complete installs of Microsoft Dynamics 365 for Finance and Operations, Visual Studio, and SQL Server. To get started with development using these VMs, simply do the following:

• Start these VMs and log in using builtinAdministrator as the username and pass@word1 as the password.
• Provision the admin user within Operations using the AdminUserProvisioning tool.
• Sign in to Visual Studio and map your local workspace to develop against the VSTS project.
• If you have more than one downloaded VM to perform development, you must rename them so that they can work with Azure DevOps.
• Optionally, you can use manual steps to add these VMs into your domain and also connect to LCS.